Bert_From_Accounting
4 years ago
Honestly, I have not played a bankruptcy since the financial crisis (SIRI, CITI, etc.). I knew nothing then compared to now (bachelors in finance and accounting, CPA, real world experience, etc.). BUT, this whole thing makes me feel like I still know nothing. I am glad I got into it, because the learning experience has been well worth what I put into it.
Does it go back to trading? No, I don't think it can. This would not be a shell like I was thinking last week. They fully "canceled and extinguished" the stock.
Unless... GAMCO's buying makes absolutely no sense. They surely should have understood what was going to happen. The only plausible explanations to me are:
-They thought the chapter 11 would not get approved and they expected a shareholder class action
-They plan to sue
-They have algo trading that is not routinely monitored for this type of situation and the computers didn't know to stop buying
-Most likely is that it is probably none of the above. But, I am really interested to see how this develops.
They even disclosed their ownership the day before the shares were cancelled. I suppose their next filing will show that they are not holding any more INAPQ. Who knows?
Bert_From_Accounting
4 years ago
Totally baffled GAMCO was buying up until Thursday 5/7/2020...
Were they expecting a different outcome? Is the story not over?
INFORMATION WITH RESPECT TO
TRANSACTIONS EFFECTED DURING THE PAST SIXTY DAYS OR
SINCE THE MOST RECENT FILING ON SCHEDULE 13D (1)
SHARES PURCHASED AVERAGE
DATE SOLD(-) PRICE(2)
COMMON STOCK-INTERNAP CORPORATION
GAMCO ASSET MANAGEMENT INC.
5/07/20 100,000 .0520
5/06/20 625- .0344
5/05/20 625- .0450
GABELLI FUNDS, LLC.
GABELLI SMALL CAP GROWTH FUND
5/06/20 175,000 .0280
4/28/20 25,000 .0280
(1) UNLESS OTHERWISE INDICATED, ALL TRANSACTIONS WERE EFFECTED
ON THE NASDAQ.
(2) PRICE EXCLUDES COMMISSION.
Bert_From_Accounting
4 years ago
Correct. The form 4's filed Friday evening state: "all previously issued and outstanding Common Stock was canceled and extinguished."
Full: Explanation of Responses:
1. As previously disclosed, on March 16, 2020, Internap Corporation (the "Company") and certain subsidiaries (the "Debtors") filed voluntary petitions for relief (collectively, the "Chapter 11 Cases") under Title 11 of the United States Code in the United States Bankruptcy Court for the Southern District of New York, White Plains Division (the "Bankruptcy Court"). On May 5, 2020, the Bankruptcy Court entered an order, which approved and confirmed the Debtors' First Amended Joint Prepackaged Chapter 11 Plan (the "Plan"). On May 8, 2020 (the "Effective Date"), the Debtors satisfied the conditions to effectiveness of the Plan and emerged from their Chapter 11 Cases.
2. Pursuant to the terms of the respective equity award agreements, immediately prior to the Effective Date, the restrictions on all outstanding restricted stock lapsed and all outstanding restricted stock units vested and shares of the Company's common stock, par value $0.001 per share (the "Common Stock") were issued in accordance with such equity award agreements.
3. In connection with the effectiveness of the Plan, all previously issued and outstanding Common Stock was canceled and extinguished.